Milma Profile

Malabar Regional Co-operative Milk Producers' Union Ltd.

(MRCMPU Ltd.)
Malabar Regional Co-operative Milk Producers' Union (MRCMPU) Limited with
registration No. D89[D] is a union of more than 1100 village level Anand pattern dairy
co-operative societies located in the six northern districts of Kerala State in South India
and it is owned by more than one lakh dairy farmers who are members of each affiliated
society and who live in the area of operation of these societies. The societies function
on the pattern of the societies affiliated to the world-famous Anand Milk Union Ltd.
(AMUL) at Anand (Gujarat), India and hence are also known as Anand Pattern Co-op
Societies or "APCOS". The area of operation of MRCMPU Ltd. comprises of the six
revenue districts of North Kerala, viz Kasaragod, Kannur, Wayanad, Kozhikode,
Malappuram and Palakkad and also having dairy plants at Kasaragod, Kannur,
Wayanad, Kozhikode, Malappuram, Palakkad, Sreekandapuram and Central Products
Dairy Naduvattom, Kozhikode District. The Union is affiliated to the state level apex
body-Kerala Co-operative Milk Marketing Federation Ltd. (Operating under the trade
name MILMA) along with its sister Unions at Ernakulam and Thiruvananthapuram,
ERCMPU Ltd. & TRCMPU Ltd. The Head office of the Union is located at Peringolam
under Kunnamangalam Post Office near Kozhikode.

Salient Features

The farmer members of the Board are elected for a five-year term from among the
Presidents of the affiliated village level Anand Pattern Co-operative societies. The very
fact that a majority of the Board members are elected farmers ensures that the business
policies of the Union are always governed with the interests of dairy farmers foremost in
mind. In addition, the fact that the assets of the Union including dairy plants, chilling
plants and the expertise and experience of its human resources are under the control of
the farmer dominated board, ensures that the instruments of development are firmly in
the hands of the beneficiary farmers. Thus MRCMPU Ltd. is at the same time, both a
business enterprise as well as a development institution and is owned by a large body
of farmers spread throughout the rural hinterland of North Kerala. This organization is
also an example of a scheme of things where farmers are helped to help themselves,
instead of being forever dependent on govt. doles and rescue packages or being
forever fearful of production quotas that are characteristic of many Western Economies.
This is also a silent revolution which daily transfers millions of rupees from the
comparatively affluent urban consumers to the poorer brethren living in the villages, and
that too without the involvement of any third party or govt. agency.
Objectives
The objective of the Union is to carry out activities conducive to the socio-economic
development of the dairy farmers by effectively organizing milk procurement, processing
and marketing of commodities as per the directions of the Kerala Co-operative Milk
Marketing Federation Ltd. For achieving this objective, the Union lays particular
emphasis on carrying out the following activities on a commercial scale.

1. The entire volume of milk produced by the farmers of affiliated member societies
is purchased at remunerative prices even in surplus situations.
2. Proper processing and packing of milk products are carried out in the dairy plants
owned by the Union to guarantee product quality of the products supplied to the
consumers.
3. Proper marketing of milk and dairy products are carried out on a daily basis to
guarantee consumer satisfaction and thus maximize economic returns for the
farmer.
4. Proactive Innovation and Quality Consciousness.

Vision
To be the global leaders in ensuring the health and wellness of Human beings by
supplying safe and sane food, produced by local small/medium, fully respected and
fairly treated farmers and self motivated work force.
 Mission
MILMA is committed to ensure Farmers' prosperity, well being and consumers'
satisfaction:

 By providing value for money through a variety of safe and sane products,
 Innovated through, sustainable, eco-friendly and transparent procedures,
 By the collective, proactive efforts of self motivated employees, farmers and stake holders.

Values
 Collective Ownership and Responsibility
 Social Commitment
 Mutual Trust through Respect
 Credibility through Transparency and Accountability
 Proactive Innovation and Quality Consiousness
 Personal as well as Institutional Confidence
 Continuous Learning

Figures at glance

1. Date of starting operation: 15.01.1990

 2. No. of Dairy Plants : 6
3. Central Products Dairy : 1
4. No. of Milk Chilling Plants : 3
5. No. of Milk Chilling Centres : 2
6. No. of Procurement and Input Centres : 10
7. No. of Marketing Depots : 9
8. No. of Human Resource Development Centre : 1
9. Turnover (2018-2019) : Rs. 1069.56 Crores (Rs 10695.6 Million)
10. Paid up share capital (2018-2019): Rs 53.08 crores (Rs 530.8 Million)
11. Average daily procurement of raw milk (2018-2019) : 6,23,496 Litres
12. Average daily sale of processed liquid milk (2018-2019) : 4,95,598 Litres
13. Average daily sale of Skimmed Milk Curd (2018-2019): 64,879 Kilogram
14. No. of farmers supplying milk to the Union (2018-2019) : 88,850

Initial Funding
Since the six districts included in the area of operation of MRCMPU Ltd. were not
included in the Operation Flood II Dairy Development Programme of the National Dairy
Development Board of India, initial funding for the project on a part-loan and part-grant
basis was provided by the Government of Switzerland through the Swiss Agency for
Development and Cooperation (SDC). Once the Union attained a financially sound
footing, the SDC withdrew from the scene in 1998 allowing the organization to grow and
develop independently.

The farmer members of the Board are elected for a five-year term from among the
Presidents of the affiliated village level Anand Pattern Co-op. societies. The very fact
that a majority of the Board members are elected farmers ensures that the business
policies of the Union are always governed with the interests of dairy farmers foremost in
mind. In addition, the fact that the assets of the Union including dairy plants, chilling
plants and the expertise and experience of its human resources are under the control of
the farmer dominated board, ensures that the instruments of development are firmly in
the hands of the beneficiary farmers. Thus MRCMPU Ltd. is at the same time, both a
business enterprise as well as a development institution, and is owned by a large body
of farmers spread throughout the rural hinterland of North Kerala.

MRCMPU Ltd. has the following functional Departments to achieve its objectives.
 1. Procurement and Inputs
 2. Marketing
 3. Production Planning and QC
 4. Finance
 5. Engineering & Projects
 6. MIS & Systems
 7. Personnel and Administration

Procurement and Inputs Department

1. Initiative to reduce cost of milk production at farmer level.
2. Initiative to improve the quality of milk.
3. Procurement of milk - arranging and monitoring its transportation up to Dairy level in a cost
effective manner.
4. And providing various inputs to DCS and farmers.

The functions are carried out through its units located at Palakkad, Pattambi, Nilambur, Kozhikode,
Wayanad, Kannur, Kanhangad, Vadakara, Malappuram and Attappady.

Bulk Milk Coolers

Bulk Milk coolers are established at societies for chilling milk to maintain the bacterial
quality through the arrest of bacterial growth at lowered temperature. As on April 2018,
there are 208 Bulk Milk Coolers having a total Rural Chilling capacity of 6.87 lakh Litre
have installed at societies located in six districts

Economic Milk Production Enhancement at Farmer Level

The following programs are carried out at the farmer level to enhance economic milk
production to improve the quality of milk production.

Artificial Insemination
AI facilities are providing through more than 100 Artificial Insemination centers located
at dairy co-operative societies. These centres are manned by self-employed youth or
trained society employees. The semen doses for insemination are providing to the
farmers on free of cost

Heifer Development Programme

 The objective of the program is to develop thousands of high yielding cows through their
adoption and focused attention from the heifer stage itself and to financially support the
dairy farmers in calf raring. Ten heifers each will be selected from many Co-operative
societies and they are proposed to be given special provisions like adequate volumes of
cattle feed, vitamins, minerals and medicines using the special budget set apart for this.
The union is started the program in the year 2009-2010 and raised 24500 heifers till
2018 year under this program..

Feed and Fodder Programme

The objective of the programme is to ensure the availability of quality feed and fodders
at farmer premises at subsidised rates. Union has implemented many schemes such
as:

 Supply of Balanced cattle feed through the Dairy co-operative societies at subsidised rate.
 Supply of green fodders at subsidised rate
 Supply of good quality maize silage and maize fodder at subsidised price.
 Supply of baled straw to farmers at subsidized rates from Straw Baling Unit at Palakkad
 Supply of essential drugs and vitamins for up-keep of proper health of milch animals
 Establishment of fodder plots to make available green fodder to farmers at affordable rates.
 Availability of readymade channel for the State/Central Govt. to provide cattle feed subsidy to dairy
farmers from the state exchequer.

Farm Support Programme

Traditional cattle shed and allied facilities of Kerala are not compatible for rearing of
high yielding cross breed animals. For improving hygiene and reducing labor cost of
mini dairy farms, Union is providing considerable subsidies for farm mechanization
equipments like milking machines, rubber mat, chaff cutter, automatic drinking bowl,
pressure washer, generator etc. In addition to farm mechanization, providing subsidies
for building of cattle shed and Bio Gas Plant.

Decentralized Veterinary Units

Under this scheme, veterinarians on contract basis are posted at a central society with
all required facilities. Service of veterinarian is to be made available on nominal cost to
 the all farmers of that area. The objective of unit is to provide quality veterinary service
on farmer's doorsteps wherever it is very essential at a cheaper rate inclusive of free
medicines and doctors conveyance.

Self-help Groups
For social and economic wellbeing of women dairy farmers, many self-help groups have
initiated at society level. Union is providing a financial support of Rs.1 lakh per group at
the initial stage of such groups. As on 1/4/2018, 101 self-help groups are functioning
under the societies of operational areas. Groups are allowing loans to the members, for
the financial requirement for cattle purchase, education of children, repair of house etc.

Procurement of Milk by Societies / Union

The following schemes are being undertaken to assist procurement of milk under proper
conditions at the societies and at the dairies under the Union

 Provision of building grants for construction of permanent buildings and facilities for societies and
special grants to societies for the erection of bulk milk coolers
 Provision of testing chemicals free of cost to societies.
 Provision of milk cans to societies at subsidized rates.

Fodder entrepreneurship and fodder subsidies

Union has raised fodder entrepreneurs whose are willing to cultivate Hybrid Napier
varsities of fodder at minimum 5 acre land and supply to the needy farmers from
societies. Union is procuring fodder from entrepreneurs at a cost of Rs.3.5/- per
kilogram of fodder and supplying to farmers at subsidized rate of Rs.2.5/- per Kilogram.
Further, providing fodder subsidies of Rs.2500.00 to the selected farmers cultivating
fodder in a minimum land area of 25 cent.

Pension fund for dairy farmers

Union is allocating 0.75% price of each and every litre of milk sold to the dairy farmer's
pension fund of Kerala government. Likewise, union has remitted Rs.3273.72 lakh till
March 2018.

Ration Balancing Program (RBP)

Ration Balancing Programme has implemented as a sub project of National Dairy Plan.
Feeds and fodders available to dairy cows are balancing in accordance to the nutrient
requirement of each animal. Determination of Nutrient requirements and formulation of
ration balancing are carried out by the help of Software developed by NDDB called
INAPH. As on 2018 march, 31009 animals have been registered and their ration have
balanced under this project

Village based milk procurement system

Sub project under National dairy plan for enhancing milk procurement systems at
society level. Under this program, there are provisions for Organization of new dairy
cooperatives, Distribution of data processor cum milk procurement system and milk
collection accessories to societies. Further, provided different type of training programs
and awareness classes to farmers and society personals on subjects like Dairy animal
management, clean milk production, dairy cooperative society functioning etc.

Dairy project for SC/ST beneficiaries

With the financial assistance of Kerala government, supporting socially and
economically back ward SC/ST communities through special dairy projects. Union is
providing cows, Cattle feed, Insurance, Veterinary aid, Fodder, Rubber mat, and Milk
pail, Labour cost to the selected beneficiaries on free of cost using state government
fund. In previous years, union has implemented seven such projects at financial outlay
of Rs.2849.65 lakhs to 1618 beneficiaries from Nilambur, Sughandagiry, Mananthavady
areas. In march2018 five projects are progressing at a financial outlay of Rs.1298.53
lakhs/- to 468 beneficiaries from Nilambur, Vanimel, Karadukka, Muttil and Parappa
areas.
Co-operative Development / Institution Building
Programme
This program mainly involves training of farmers to take an active and effective role for
themselves in the development and growth of their society and thereby union.
Awareness classes on scientific dairy animal management also includes under the
program

Awards and scholarships

In order to develop a competitive spirit among farmers for achieving excellence in their
field of activity, awards are given in each year to farmers and societies who are
identified as best performers. In addition, four types of scholarships are also given to
farmers' children to enable them to pursue education at various levels.

ADDITIONAL SKILL ACQUISITION PROGRAMME:

Additional Skill Acquisition Programme - ASAP is a joint venture initiative of the General
and Higher Education Departments of Government of Kerala to amplify working hands
in different sectors of the economy, by providing additional skill sets to students along
with their regular courses. Malabar Milk Union has initiated the idea of formulation of
ASAP course is based on the vision of providing good quality milk to the consumers, for
which the initial quality of the milk needs to be excellent through the Bulk Milk Coolers
(BMCs) at the primary co-operative societies. Union identified that proper and timely
maintenance of BMCs being very critical due to the perishable nature of milk for which
they have started the Bulk Milk Cooler Operator course certified under NSDC (National
Skill Development Council) under Agriculture sector, as per the requirements by NSDC,
with our existing HRD facilities, for providing the ASCI Certified course to the students
to improve their employment opportunity all over India.

TRAINING PARTNERSHIP WITH FSSAI FOR

PROVIDING FoSTaC TRAININGS
Food Safety Training and Certification (FoSTaC) is an initiative by FSSAI whereby food
safety trainings are conducted for target groups in the food business to maximize
knowledge and awareness of food safety regulations and policies to ensure food safety
and hygiene.
FSSAI had made Training mandatory of all Central and State Licensed FBOs under
FSS Act. Each Food Business Operator, exceeding specified head count needs to have
at least one trained & certified person in their business premises to ensure food safety.
The FSSAI shall provide training programs in food safety and standards for people who
are in the food businesses, whether as food business operators or employees or
otherwise. Malabar Milma is authorized to provide training under this programme. We
are conducting a range of In-house and Open training for Individuals in different
sections of food chain.
Malabar Milma has been empanelled as Training Partner of FSSAI for providing
FoSTaC trainings all over India under the course Milk and Milk Products. We are having
certified FoSTaC trainers for conducting training and assessments for candidates from
different sections of food chain.
The training programs for the Food Safety Supervisors at all 3 levels (viz. Basic,
Advanced and Special) would be conducted through the classroom sessions. The
content for FOSTAC has been created by our experts to address the specific needs of
each of these identified groups. We shall conduct the programme at our well
established training centre located at Naduvattom, Kozhikode.

Malabar Rural Development Foundation

Malabar Rural Development Foundation is a charitable trust registered under the Indian
Trusts Act 1882 for implementing non - core social developmental activities for the
benefit of farmers in Malabar region. Chairman, MRCMPU Ltd. is the Managing Trustee
of MRDF. It is managed by a board of trustees consisting seven members including
Chairman of KCMMF Ltd., Chairman of MRCMPU Ltd and Managing Director of
MRCMPU Ltd. The major initiatives of MRDF include the following:
 Procurement and distribution of good quality farm machineries like milking machines, chaff cutter,
rubber mats, Automatic drinker, pressure washer etc. at reasonable rates to farmers
 Distribution of Alternate feeds like Maize powder, Wheat bran, Ground nut cake to the farmers at
cheaper rate
 Implementation of fruits and vegetable projects
 Financial support for the education of children of farmers and employees who have registered under
the trust
 Implementation of Farm Tourism Initiatives involving the linkage of dairy farms and scenic spots in
Wayanad District, so as to give tourists an opportunity to spend quality time with the dairy farmer in
the village

MARKETING DEPARTMENT
Marketing is one of the three key functional areas of MRCMPU Ltd. and it is the only
functional area responsible for generating income for the Union. Marketing comprises of
the following two broad areas.

MARKETING OF FRESH PRODUCTS

Marketing of Fresh Products (which includes different varieties of milk, curd and butter
milk) is a responsibility being carried out by the marketing sections attached to the
seven milk-processing dairies. The Marketing activities in these dairies can be broadly
classified into Distribution Management and Market Development Activities. The former
involves daily distribution of fresh milk and curd in the morning and afternoon through
insulated vehicles to the dealers and collection of money and indent from dealers and
other related planning and follow-up activities. The latter involves field activities
designed to expand the reach of the Union's distribution channel for milk and milk
products and to increase market penetration. This is done through a team of field sales
representatives for each dairy who are given the responsibility in a specified geographic
zone, which in turn comprises of a number of defined markets. The framework for the
Yearly activities as well as the financial support is provided through the yearly Marketing
Plans of Operation, which is finalised along with the year-wise budgets.

MARKETING OF LONG LIFE PRODUCTS

Marketing of Long Life products (which includes Ghee, Ice-cream, Sip-up, Peda, Palada
mix, Flavoured Milk or Milma Plus